Government has recognised the value of decentralised energy and has clear commitments to growing the industry in the years ahead.
Through our work with Government and other key bodies, the Association for Decentralised Energy provides an influential voice for its members.
We are the leading decentralised energy advocate. We are shaping the debate and influencing policy around the UK's transition to a more cost effective, efficient and user-led energy system.
2020's policy achievements
- The ADE won Ministerial support for our agenda in 2020, with The Rt Hon Kwasi Kwarteng MP launching the sector offer for the Heat Networks Industry Council, putting heat networks on a strategic footing with hydrogen and heat pumps and setting a course for sector success, with the ADE's flagship policy on zoning now going out to consultation.
- The Minster called on the ADE to contribute in roundtables and briefings on energy flexibility and energy efficiency and has contributed quotes for two ADE press releases this year.
- Together, we took on the ambitious challenge of setting a clear vision for the importance of CHP; commissioned economic modelling from Government trusted economists and produced the ADE's report "Zero carbon CHP: Its role and how to get there".
- Recognising that it is only through persuading Government of the value of CHP in a net zero energy system that we will preserve existing support and carve out a new system of incentives for decarbonising, we are making a key contribution to the future of the UK's industrial clusters.
- We have been referenced by Government for influencing their work with the publication and promotion of the ADE's 'Let’s Talk About Flex' report focused on the market opportunities of removing barriers to domestic DSR. With domestic flexibility estimated to cut the cost of decarbonisation by £6.9 billion per year, the ADE is at the forefront of the policymaking process.
- The ADE lobbied at the highest levels and advocated for industry and supply chains to be closely involved in the implementation of the Green Homes Grant Scheme.
Industrial and commercial CHP
- Lobbied successfully to keep BSUoS as a per kWh charge rather than a per site, per day charge, thus avoiding new costs for CHP sites.
- Successfully made the case for avoiding the detrimental impact of a Carbon Emissions Tax on the CHP industry given the inability to trade allowances that this would result in: HMT and BEIS have now introduced a UK Emissions Trading Scheme.
- Protected significant value that would have been lost in 2020 if CHPs using steam turbines could not participate in the capacity market as a result of the new emission limits and working closely with BEIS to extend this to all CHPs.
- Enabled ADE members to more easily demonstrate, and get paid for, delivering services, and hence to participate in the lucrative £350m/year Balancing Mechanism.
- Secured major changed to NGESO’s RIIO-2 business plan that will enhance flexibility providers’ ability to participate in NGESO Balancing Services.
- Secured substantial changes to standards for domestic DSR, ensuring that members can build a range of innovative, lucrative business models and avoiding inappropriate requirements.
- Successfully lobbied for industry's ability to deliver on Conservative Party Manifesto Commitments, holding a pivotal roundtable immediately prior to the Chancellor’s announcement of £3bn for the decarbonisation of domestic and public sector buildings.
- Advocated for improved design of the Industrial Energy Transformation Fund; reducing the eligible project size, securing aggregation and grant funding not committed in Phase 1 and an expansion to the scope beyond ETL
- Took action to show the complementarity between energy efficiency and flexibility: we worked with members in both sectors to develop a bid for innovation funding to trial, for the first time, how a building’s efficiency can directly support greater flexibility.
- Secured 2020's key policy shift for the heat networks sector: the Government commitment to consult on zoning, with a view to its inclusion in the 2021 Energy Bill. Zoning, if implemented, would be a defining supporting measure for investment in large-scale heat networks.
- Supported Heat Networks Industry Council members to negotiate a customer protection statement with Government which has been cited several times by the Minister as demonstrating industry's leadership during COVID. We will build on this in 2021 with the Minister as our formal Council co-Chair.
- Relieved pressure on supply chains and ensured that all heat networks can comply with new legislation by securing a longer implementation period for the Metering and Billing Amendments.